Illegal Drug Compounding: Your Legal Nightmare Waiting to Happen. November 22, 2003
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1 1 1 Whitehouse Station, NJ Drugs FDA says a drug is any substance, food or nonfood that is used to treat, cure, mitigate, or prevent a disease, any nonfood substance that is intended to affect the structure or function of the animal, any substance administered by injection FDA says: A new drug is unsafe unless there is in effect an approval of a new animal drug application and unless the intended use of a drug and its labeling conform to the approved application Regulatory Players Food and Drug Administration Animal foods, veterinary drugs, medicated animal feeds Center for Veterinary Medicine office within the FDA which assists in providing for the health care needs of animals through the approval and post-approval monitoring of safe and effective animal drugs, medical devices, and feeds State Veterinary and Pharmacy Bds SHOULD THERE BE REGULATION? Paternal views weighed against individualism It s about protecting the consumer Consumer Be Ware Food, Drug, and Cosmetic Act ( FDCA ) The FDA... enforces the FDCA, thereby assuring the safety and effectiveness of drugs, devices, and safety of food supply 1 Dr. Charlotte Lacroix owns a boutique law firm based in Whitehouse Station, New Jersey (908) Dr. Lacroix is licensed to practice law in New Jersey and Pennsylvania and assists veterinarians nationwide with their business related legal matters.
2 2 is responsible for the approval and regulation of animal foods, veterinary drugs and medicated animal feeds Drug Approval Process To be approved, NEW ANIMAL DRUGS must be established by scientific testing as effective and safe by the sponsor of the drug product Effective means that the product will do what it is claimed it will do consistently and uniformly Safe means the product is safe to animals and persons administering the product or otherwise associated with the animal, that food products derived from animals are safe, and safe to the environment Good Manufacturing Practices Drug Approval Process Adulterated Drugs... contain unsanitary components, lack adequate control in manufacture, differ in strength from that recognized in official compendium, or that are mixed with another substance to reduce their quality or strength Includes mixing several drugs in a syringe Bute-Banamine-Dex Valium-Ketamine DMSO +?? Compounding leads to Adulteration Compounding is any manipulation of drug formulation to produce dosage form other than that manipulation that is provided for in the directions for use on the labeling of the approved drug product Compounding leads to Adulteration Examples of Compounding combine or dilute FDA approved drugs for better delivery prepare finished dosage forms from bulk drug substances prepare injectables from oral dosage forms Ivermectin, Ventipulmin.... to obtain products that differ from the starting materials Enforcement Discretion COMPOUNDING IS NOT permitted by the FDA.. however, FDA recognizes that veterinarians often compound drugs and therefore exercises its ENFORCEDMENT discretion to permit compounding FDA s Compounding Policy ( (rev 7/14/03)
3 permitted for licensed practitioners who manufacture, prepare, propagate, compound or process drugs during the regular course of business, as long as the compounded product is NOT a new animal drug prescribed VCPR in certain instances, but only rarely, such as to treat poisoning 3 Permitted Compounding... Cpding of products from approved animal or human drugs Cpding of bulk substances Unless the finished product is a new animal drug Drugs withdrawn from the market???? Licensed veterinarians may legally use or dispense veterinary prescription drug products ONLY within the course of their professional practice where a valid veterinary-client-patient relationship exists Compounded Drugs Are NOT generics FDA approved drugs used in an extra-label manner (unless reformulated) substitutes of approved drugs for resale Are Reformulations of (current and former )FDA approved drugs In context of specific VCPR Bulk combos Resale.Look at the evidence? Fees charged to clients Mark-up of drugs cpded by pharmacies Administration fee Prescription fee Vet s stock pile How big is it? What s the turnover? VCPR Where is the liability? FDA penalties Veterinary State Board Action Lawsuits by Clients Negligence Breach of contract Fraud
4 Prosecuted for animal abuse 4 FDA Penalties Warning letter advising recipient of violation Seizure of violative goods Injunction preventing further violations Criminal prosecution Felony Misdemeanor State Veterinary Board Action Findings: Unprofessional conduct [aka Ethical Violations ] Negligence Penalties License revocation, suspension Required CE, probation Animal Law Jrnl Bar Association Animal Law Committees What Is Negligence? Failing to exercise the level of care, skill, diligence, and treatment that is recognized as the standard of acceptable and prevailing veterinary medical practice Proving Negligence: 4 elements Duty, Breach of Std of Care, Proximate Cause, Damages (the driver) Standard of Care Set By... Veterinary colleagues Publications: texts and trade journals Guidelines: AAEP, AVMA... CE meetings: AAEP, CVC, WVC... Legislation and the Courts Statutory Violation Rule Negligence per se if you violate FDCA the violation is the cause of the injury, the plaintiff is within the class of persons intended to be protected by the law, and the injury is within the area of risk intended to be avoided by the law T J Hooper Case (1932) There are precautions so imperative that even their UNIVERSAL DISREGARD will not excuse their omission (L. Hand)
5 Restatement of Torts No group of individuals and no industry or trade can be permitted, by adopting careless and slipshod methods, to save TIME, EFFORT, MONEY,. at the expense of the rest of the community. If the only test is to BE what has always been done, no one will ever have any great incentive to make any progress to the direction of safety What standards Failure to... use legal product inform client of risks with legally compounded prdts do due diligence on pharmacy maintain medical records recommend autopsy or referral Misrepresentation of product and tx Human Injury, Pet Loss and Injury Economic Veterinary expenses Lost income FMV of animal Noneconomic Loss of companionship Pain and suffering Emotional Distress MDs Noneconomic Damages 2001 Kentucky equine case: $125,000 award Owner gave custody of two horses to husband and wife Custodians sold horses for slaughter within days of transfer Custodians lied to owner about whereabouts of horses Compensatory and punitive damages Noneconomic Damages Illinois Anti-cruelty Statute Defines companion animal as animal commonly considered or considered by owner as pet, including, dogs, cats and *HORSES* Owner Duties food, water, shelter, vet care, humane care Non-economic damages $500-25,000 State of Colorado HB Bill imposes civil liability for animal cruelty and negligent animal healthcare professional practices affecting companion dogs and 5
6 cats, and establishing specific standards of veterinary practice involving inoculations for companion animals Cap of $100,000 for loss of companionship Pulled 2/14/03 6 Michigan Bill SB 1379 (Introduced 6/02) The owner of a domestic animal may bring CIVIL action to recover non-economic damages up to $250,000 for loss of the domestic companion animal caused by another person s GROSS NEGLIGENCE or willful and wanton misconduct A dog, cat or HORSE is presumed to be a domestic companion animal Noneconomic Damages New Jersey Anti-cruelty Statute Introduced 2/13/03 Creates civil remedy for person guilty of violating cruelty statute Up to $500 for loss of companionship No cap on emotional distress Applies to cats, dogs, HORSES Noneconomic Damages New York AB 6340 (3/03) Unjustifiable negligence Copy cat drugs Loss of companionship Burial expenses Court costs and attorney fees Damages recovered by Guardian Ad Litem appointed by court and payable into a TRUST for the care of the animal Massachusetts SB 932 (2003) negligent act Fraud A false representation of matter of fact, whether by.. words or by conduct (compounded = generic) false or misleading allegations, or concealment of that which should have been disclosed, which deceives and is intended to deceive another so that he shall act upon it to his legal injury. Prosecuted for Animal Cruelty Veterinarians are treating horses with products they know (or should know) to be illegal and for which they have no data to support the product s safety, effectiveness and purity unnecessary pain and suffering
7 7 Heightening Status of Animals Intent to impose more responsibility on pet owners Berkley/SFO/WH, CA Boulder, CO Sherwood, AR Amherst, MA Menomonee Falls, WI Rhode Island What are DVM s ethical and legal obligations? Who is going to decide? Limiting YOUR Liability Compound Only when there is NO FDA approved drug To reformulate an approved animal or human drug To make formally FDA approved drugs that are no longer available (only under limited circumstances and this may not even be legal) VCPR Don t compound to make. cheaper substitutes of FDA approved drugs new animal drugs Limiting YOUR Liability Due diligence of Compounding Pharmacy Interview an officer (pharmacist) of the company References from colleagues Product liability insurance Financial status, longevity Visit facility Source of bulk ingredients Compliance with Good Compounding Practices Limiting YOUR Liability Owner disclosure and consent Efficacy and safety is anecdotal Contact your professional malpractice carrier Don t look like a distributor Stock pile Computer mark up codes Ask yourself, Is this drug safe and effective?
8 8 Compounded Pdt Red Flags Vials: Sterile, Expiration Date, Lot number Cheaper substitute for FDA Approved drugs Adequan, Ventipulmin, Gastrogard AVMA Pharmacy Complaint Form ( The Future Increased lawsuits Emergence of legal remedy for loss of companionship Increased owner responsibilities Increased owner/vet accountability Increased quality of care and consistency Increased cost of care Few Words of Wisdom A client cannot consent to sub-standard care You get what you pay for No good deed goes unpunished Do the right thing by the patient always Don t be the one to make case law These presentation notes have been reprinted with the permission of the author for the sole purpose of distribution to the AAEP members.
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